Phal-yellow leaves some root rot-sorry long thread.

[roxymusic]

I received a Phal as a gift it- came from a florist.-I watered it carefully (I thought)checking to see if it were dry. I wish i had found this board earlier. Anyway, the leaves began to turn yellow on one side. I pulled it out of the pot-it was packed tightly with spagnum and sheet moss, and in a pot way too big for the root size. I cut away all the mushy/dead roots, put cinnamon only on the tips of roots that i had cut damage away from. It still has some nice green roots, what do I replant it in?-I know it needs a little pot. Also the roots are all on the 'outside" of the plant like a crown-i dont' know what a healthy phal root system looks like.
Thanks in Advance.